What the IRS can do now
After the CP504, the IRS can seize your state income tax refund. For federal levy (wages, bank accounts, Social Security), the IRS must first issue an LT11 or Letter 1058 giving you 30 days to request a Collection Due Process (CDP) hearing.
Your remaining options
Full payment, installment agreement, Offer in Compromise application, CNC status, or CDP hearing request if LT11 issues. The installment agreement is by far the most common resolution.
Common questions
- Can the IRS take my Social Security?
- Yes, up to 15% under the Federal Payment Levy Program. Some benefits (SSI, VA) are exempt. We can request levy release under specific hardship circumstances.
Related
Tax Relief & Back Taxes
Back tax filings, installment agreements, penalty abatement, and offer-in-compromise support for taxpayers behind with the IRS. We file first, then negotiate.
IRS Notice & Letter Response
Responding to IRS notices (CP2000, CP14, CP504, LT11 and others) within the deadline, with proper documentation. You get a copy of the entire response packet.
Responding to an IRS CP503 Second Reminder
CP503 is the IRS's second reminder of unpaid tax. CP504, the intent to levy, comes next. An installment agreement set up now avoids the intent-to-levy stage.
Responding to an IRS LT11 / Letter 1058
The LT11 or Letter 1058 gives you 30 days from the notice date to request a Collection Due Process hearing before the IRS levies wages and bank accounts.